Recently, Peter Huntsman, CEO of US-based polyurethane producer Huntsman, stated that the company has observed early signs of a potential recovery in the methylene diphenyl diisocyanate (MDI) market.

Huntsman pointed out that MDI was one of the first major chemicals to experience a decline in demand and profits, with the profit decline being the result of multiple factors. Rising interest rates led to a slowdown in the North American construction industry, which is an important end market for polyurethanes, while Europe experienced an industrial recession. These factors collectively reduced the demand for polyurethanes, thereby causing the MDI market to fall into a slump. Additionally, projects announced before the pandemic have gradually come online, leading to overcapacity, followed by the most severe destocking cycle in history.

Huntsman expects the destocking process to end soon. He noted that the company's MDI sales have increased over the past few quarters. In China, publicly reported prices for polymeric MDI (PMDI) have reached their highest level in three years, and China's economic recovery is expected to continue over the next decade. In the United States, several companies have publicly announced increases in MDI prices. This is the first time in two years and is also seen as another sign that the MDI destocking period is coming to an end.

Meanwhile, recently, Wanhua announced that, starting from February 28, 2025, or as per contract terms, it will increase the price of polymer MDI in the ASEAN region, with an increase of $100 per ton. This price adjustment is due to rising logistics and production costs, aimed at ensuring supply chain stability and continuing to provide value to customers.

This follows Wanhua's announcement in January 2025 of a $200 per ton increase in MDI prices for the ASEAN region, also reflecting MDI manufacturers' confidence in polyurethane consumption performance in Southeast Asia.

In 2024, the Southeast Asian polyurethane consumption market showed outstanding growth. Vietnam, Thailand, and Indonesia are the main manufacturing and consumer countries in Southeast Asia. Recently, the U.S. imposed additional tariffs on goods from China, Mexico, and Canada, reshaping international trade flows, with Southeast Asia potentially being one of the beneficiaries.